Media ININ Economy We Trust
Media in Abu Dhabi 11 July 2018,
The Council of Ministers adopted a decision to implement the value added system for tourists, which will include integrated systems for direct link between outlets and shops with the state-wide recovery system starting from the fourth quarter of this year in support of the government’s efforts to support the implementation of the tax system efficiently in the country and in accordance with The highest levels of readiness and the best international standards in this field.
The decision of the Council of Ministers to keep pace with the growth of the tourism sector in the country and to enhance its position as a global destination and destination for tourists, where the VAT refund system, which is 5% of the value of taxable purchases for tourists will be implemented in cooperation with an international institution specialized in tax refund services, After the completion of the procedures in cooperation with the institutions and stakeholders.
Non-resident tourists coming from outside the country may refund the value added tax on purchases purchased from participating retailers in the system provided that such goods are not excluded from the tax system and through designated outlets to be announced by the Federal Tax Authority at the start of the application of the system .
The tourism sector contributes directly to the local economy. The number of passengers through the country’s airports reached 123 million passengers in 2017. The total contribution of the tourism sector to the country’s GDP reached 11.3% in 2017, equivalent to 154.1 billion dirhams.
